Fidelity Life solvency.
Our adjusted solvency margin.
The Adjusted Solvency Margin of Fidelity Life at 31 December 2023 was $160.8m, made up as follows:
|
|
Statutory Fund $'m |
Non-Statutory Fund $'m |
Fidelity Life $'m |
|---|---|---|---|
| Solvency Capital | 795.8 | 41.3 | 837.2 |
| Adjusted Prescribed Capital Requirement | 656.8 | 19.5 | 676.4 |
| Adjusted Solvency Margin | 139.0 | 21.8 | 160.8 |
| Adjusted Solvency Ratio | 121% | 212% | 124% |
Solvency Capital and Adjusted Prescribed Capital Requirements are determined in accordance with the RBNZ Interim Solvency Standard for life insurance business, 2023.
The RBNZ is expected to release a second amendment to the Interim Solvency Standard in 2024. This amendment is yet to be finalised, but is expected to reduce the Solvency Margin of Fidelity Life. A revised position is presented below allowing for the expected impact, this has been reviewed by the Appointed Actuary of Fidelity Life. Under the revised version, which is not yet finalised and does not represent the regulatory solvency position, the Adjusted Solvency Margin at 31 December 2023 would have been $156.3m, made up as follows:
|
|
Statutory Fund $'m |
Non-Statutory Fund $'m |
Fidelity Life $'m |
|---|---|---|---|
| Solvency Capital | 795.8 | 41.3 | 837.2 |
| Adjusted Prescribed Capital Requirement | 661.1 | 19.7 | 680.8 |
| Adjusted Solvency Margin | 134.7 | 21.7 | 156.3 |
| Adjusted Solvency Ratio | 120% | 210% | 123% |
Adjusted Prescribed Capital Requirement is the minimum amount of capital that a licensed insurer should maintain in normal circumstances.
Solvency Capital is the amount of equity, adjusted in line with prescribed RBNZ requirements to move capital from a performance-reporting basis closer to a going-concern economic valuation.
The Adjusted Solvency Margin is the excess of Solvency Capital over the Adjusted Prescribed Capital Requirement.
The Adjusted Solvency Ratio is the Solvency Capital divided by the Adjusted Prescribed Capital Requirement.
More information on the second amendment can be found here.
Things you should know.
Westpac life insurance products are arranged by Westpac New Zealand Limited ("Westpac") and underwritten by Fidelity Life Assurance Company Limited ("Fidelity Life"). None of Westpac Banking Corporation ABN 33 007 457 141 (incorporated in Australia), Westpac, or any member of the Westpac Group of companies guarantee the obligations of, or any products issued by, Fidelity Life or any member of the Fidelity Group of companies.
Terms, conditions, exclusions and limits apply to Westpac life insurance products and more detail can be found in the relevant policy document. The availability of any insurance cover is subject to the acceptance and approval of a complete application. Any claim payment is subject to your claim being accepted.
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